| Wacker Construction Equipment AG, Munich, and Neuson Kramer Baumaschinen AG, Linz (Austria) plan to merge during the course of 2007. The shareholders of both companies and management of Wacker Construction Equipment AG have signed a Memorandum of Understanding to this effect. The new company is to be called Wacker Neuson AG. Sales generated by Wacker Construction Equipment AG amounted to EUR 619.3 million in 2006. Based on provisional figures, Neuson Kramer Baumaschinen AG had a sales figure of EUR 260 million for fiscal 2006/2007 (February 1 – January 31). Approval from the anti-trust authorities is still pending.
Joint leveraging of growth opportunities in Europe, the USA and Asia
The planned merger brings together two profitable, family-run quality and technology leaders to create a major global manufacturer of light and compact equipment. “We are convinced that the high-quality portfolios of both companies provide a perfect springboard to capitalize on growth opportunities in the compact equipment segment in the mainstream construction, gardening and landscaping markets in Europe, the USA and Asia,” explains Dr.-Ing. Georg Sick, President and CEO of Wacker Construction Equipment AG and Hans Neunteufel, CEO and main shareholder of Neuson Kramer Baumaschinen AG. Neunteufel and Dr. Ulrich Wacker, President of the Supervisory Board of Wacker Construction Equipment AG continue: “Both companies were on the path to success and would have continued to thrive irrespective of the merger. However, the merger does open up a new dimension, paving the way for a strong position in the global compact and light equipment market.” Both companies are united in their commitment to continue serving their existing customer bases and building a successful future through a long-term strategy focused on local market requirements. “The IPO remains a core component of our corporate strategy,” emphasizes Sick who will chair the new Excecutive Board. “We are well prepared for the IPO and in a position to take this step at short notice.”
Synergies across sales, rental and service
Both companies are convinced that their product portfolios are mutually complementary. The user base, target markets and sales channels are practically identical. “Our aim is clear – we plan to fully leverage existing sales channels and distribution agreements in Europe to the benefit of our customers and business partners,” emphasizes Neunteufel. WACKER’s global sales and service network coupled with its rental business offer significant synergy potential. Sick goes on to state that Neuson Kramer’s high-quality compact equipment such as excavators and wheel loaders is the ideal complement for WACKER’s rental pool. The distribution partnership for Bobcat products in Germany, Austria and Switzerland was terminated at the end of 2006. It was due to expire in 2007.
About Wacker Construction Equipment AG:
Founded in 1848 as a blacksmith’s shop, today Wacker is a major global manufacturer of high-quality light and compact equipment designed to help customers increase operational efficiency. With over 250 product categories and complementary rental, spare parts and repair services, Wacker is the partner of choice among professional users in construction, gardening, landscaping and agriculture. The company has over 160 sales and service stations in more than 30 countries, ensuring it has the consulting and support depth and reach necessary to give its customers the best possible service. In fiscal 2006, Wacker increased sales by 23.1 percent to EUR 619.3 million and profit before interest and tax by 51.3 percent to EUR 76.7 million. Maintaining its traditional roots, the company is almost exclusively in the hands of its founder family.
About Neuson Kramer Baumaschinen AG:
Neuson Kramer Baumaschinen AG is an international player specialized in the development, production and sale of high-quality compact equipment. Its portfolio includes mini and compact excavators, wheel loaders, dumpers, telescopic loaders and compact loaders. The company complements its products with a comprehensive, highly efficient solution offering for compact equipment. Neuson Kramer products are distributed via selected partners. Based on provisional figures, Neuson Kramer Baumaschinen AG grew sales 31 percent to around EUR 260 million during fiscal 2006/2007 (February 1 – January 31). During the same period, it increased profit before interest and tax by 47.5 percent to reach EUR 44.7 million. The company is family-owned.
Contacts:
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Imre Szerdahelyi
Head of Corporate Communication
Wacker Construction Equipment AG
Preußenstr. 41
80809 München
Tel. +49 - (0)89 - 354 02 – 251
Fax +49 - (0)89 - 354 02 – 298
imre.szerdahelyi@eu.wackergroup.com |
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Hans Neunteufel
CEO
Neuson Kramer Baumaschinen AG
Haidfeldstrasse 37
A-4060 Linz/Leonding
Tel. +43 - (0)732/90590-101
Fax. +43 - (0)732/90590-100
vorstandssekretariat@neuson.com |
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Disclaimer:
This publication constitutes neither an offer to sell nor an invitation to buy securities. The offer in Germany is being made exclusively by means of and on the basis of a prospectus to be published in the course of a potential public offering on the website of the company and which will be available in printed form free of charge at the company and the underwriters. This document does not constitute an offer of securities for sale or a solicitation of an offer to purchase securities in the United States. The shares in Wacker Construction Equipment AG (the "Shares") may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended. Neither Wacker Construction Equipment AG nor any selling shareholder intends to register any portion of the offering in the United States or to conduct a public offering of the Shares in the United States. This document is only being distributed to and is only directed at (i) persons who are outside the United Kingdom or (ii) to investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) or (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2), (a) to (d) of the Order (all such persons together being referred to as “relevant persons”). The Shares are only available to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such securities will be engaged in only with relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its contents. |
